VAT Record Keeping Services

Under the Federal Tax Law, every person registered with FTA is required to keep and maintain certain business records. Almost all the businesses keep and maintain accounts and records for their internal purposes, but with the enactment of the UAE VAT Law, the businesses are mandatorily required to keep and maintain their books of records in a proper manner. These Accounts and records maintained by businesses must be retained for a period of 5 years from the end of the tax period to which they relate.

The Accounts and records to be maintained by a taxable person include:

 

• Records of all the Goods sold and services rendered
• Record of goods and services exported
• Tax invoices or alternative documents related to inward supply of goods and services
• Record of goods and services imported
• All tax credit notes or alternative documents issued
• Record of goods and services disposed of or used for non-businesses matters, showing the taxes paid for the same
• Record of goods and services purchased for which input tax was not recovered
• Record of adjustments or corrections made to accounts or Tax Invoices
• Tax Record that includes the information about
  • VAT due on taxable supplies
  • VAT due/refundable after any adjustments/corrections
  • VAT recoverable on supplies or imports

Further Accounting records that FTA can ask for include, annual accounts, trial balance, , general ledgers, VAT ledgers, purchase day book, Sales Day book, Inventory records etc.

Any taxable person not keeping and maintaining the proper Tax records will be subject to penalties of AED 10,000 for the first offense and AED 50,000 on repetitions.